OREANDA-NEWS. September 23, 2009. After Closure of Unit 2 Ignalina Nuclear Power Plant (NPP) Lithuania will be able to generate and import three times more electricity than there is demand.

This was confirmed by the working group formed by the Ministry of Energy, dealing with the issue of power supply to Lithuania after closure of INPP, given the analysis of power markets in the neighboring countries.  Although next year Lithuania will need about 9.1 terrawatthours (TWh) of electricity, the potential of supply is about 27.5 TWh.

According to experts, preliminary proposals of importers show that power supplying companies have reacted quite positively to the news that from the next year Lithuania will actually start implementing  electricity market model.

After January 1, 2010 electricity supply from outside European Union (Belarus, Russia, the Ukraine) may reach 11 TWh, from EU members (Scandinavia, Estonia, Latvia) – up to 4,6 TWh. The potential of Lithuanian generators accounts for 8 TWh of electricity. This potential is above the Government's approved Electricity Market Development Plan with the expected generation of 4,5 TWh. I.e., overall Lithuanian generators may produce up to 12,5 TWh of electricity.

“The preliminary sales proposals from other countries show that companies, supplying electricity to Lithuanian market, are determined to actively participate in the electricity market to be launched from the next year”, - says Mr. Edvardas Vazgela, member of working group of the Ministry of Energy, Head of Department of Market Administration, Lietuvos Energija AB.

According to Electricity Market Development Plan, approved by the Government, within the next year up to 3 TWh are to be generated by the power plant Lietuvos Elektrine in Elektrenai, 0,35 TWh –  by renewables (hydro power plants, wind parks), up to 1,15 TWh – by domestic thermal power plants, while 1 TWh will be purchased based on a forward contract with Estonia. This means that 5,5 TWh will be secured by forward contracts. 

The remaining part - about 35 per cent of electricity will be purchased at market conditions from Estonia, Latvia, Scandinavia, the Ukraine, Russia and Belarus.

Currently, the implementation of the above-mentioned Electricity Market Development Plan is under way.  As scheduled, by December 31, 2009 there must be defined an electricity market supervision and regulation mechanism, while from January 1, - the modified legal acts will come into force, regulating electricity import.

Moreover, Kaunas HPP and Kruonis PSP will be unbundled from Lietuvos Energija and established as state enterprises. Furthermore, electricity generation shall be unbundled from transmission activities and independency of transmission system operator in accordance with European Union legal acts, regulating electricity sector operations, shall be ensured.